No Comments

East End Capital Sells Wynwood Building For $12M, Resolves Foreclosure

An affiliate of East End Capital sold a commercial building in Miami’s Wynwood Arts District for $11.8 million, resolving a foreclosure lawsuit in the process.

EERC 310 Owner LLC, led by Jonathan Yormak and David Peretz of New York-based East End Capital, sold the 19,891-square-foot building at 310 and 318 N.W. 25th St. to 310 NW 25 SPE LLC, managed by Chaim Cahane of Miami Beach-based Forte Capital Management and Jonathan Krasner. The buyers assumed the seller’s $11 million mortgage with FS Rialto 2019-FL1 Holder LLC, an affiliate of Rialto Capital Management.

 

Click here to read this story in its entirety.

 

No Comments

Miami 21’s Special Area Plans Have Created Special Problems

In a recent article, Neisen Kasdin, managing partner of Akerman LLP’s Miami office, argued that the opposition to special area plans (SAPs) was “largely driven by community activists who oppose change because they like things the way they are and want to preserve their positions of power in the community. They generate opposition by preying upon people’s fear of progress, often without regard to the true long-term interests of the community.”

Nothing could be further from the truth—the opposition to SAPs has been galvanized across a broad spectrum of opponents who have watched this planning tool turned against our most vulnerable communities by developers. That outrage resulted in the City of Miami Planning Zoning & Appeals Board voting unanimously last year to recommend to city commissioners that SAPs be abolished from the Miami 21 zoning code.

SAPs Are Government Up-Zoning

A “special area plan” is a zoning process in Miami 21 that allows a developer that assembles over nine acres of land to apply for the right to build at much greater height and density than would otherwise be allowed. If that application is approved after going before the PZAB for its recommendation and then obtaining final approval from the city commission, the developer then has greater flexibility (e.g., the Magic City SAP received exemption from certain liquor sales limitations) as well as relief from the Code’s otherwise strict rules regarding “succession.”

Miami 21 is a “form based” code designed for “successional growth.” For example, the T-3 transect governs single family and duplex residences of maximum two stories, and T-4 governs multifamily apartments of three stories maximum. Any up-zonings of more than one transect are generally not allowed. SAPs are a planned exception to successional growth, intended to incentivize developers to cooperate with the city planning staff to create a better development than the developer might otherwise build. Kasdin is correct that this process has worked well in some high density places, such as Brickell City Centre. But not all, and there’s the rub—“one size does not fit all.”

At their root, the projects Kasdin is promoting involve governmental up-zoning, with lobbyists approaching the city of Miami on behalf of developers seeking permission to build more than they are otherwise legally allowed to build.

This type of government led development is neither organic nor the result of natural market forces. Rather, market forces are being manipulated to incentivize acquisition of real property in poorer neighborhoods where private investment has been largely absent, except by slumlords, often for decades.

In theory, this process involves the city agreeing to allow more density and height in exchange for the developer making available to residents certain benefits, such as affordable housing, workforce preferences and living wages. But the “community benefits” are only as good as the negotiating process, and it is often the case that the neighborhood doesn’t get what it deserves in a process controlled by connected people in “special deals for special people” handed out by compromised politicians who don’t have the public interest at heart.

 

Click here to read this story in its entirety.

 

No Comments

CRE Price Growth Expands in January

In January, US commercial real estate price growth hit levels not seen since before COVID-19, according to the latest Real Capital Analytics CPPI: US summary report.

Overall, the US National All-Property Index rose 6.9% from a year ago and 1.2% from December.

While prices continued to accelerate in January, deal volume slumped after a record-breaking December 2020.

While there are still questions about how much of the workforce returns, office prices rebounded 3.3% year-over-year in January. Suburban offices drove those gains. Last August, office prices were posting no annual growth.

Industrial, which has been the hottest sector through the pandemic, posted 8.3% annual growth, giving it the top spot among all the property types. Industrial prices are slightly below what it posted in 2019.

Gains in multifamily stayed near the 7% they have been hovering near over the last several months, hitting 6.8% in January. They are well below the highs posted in 2018.

The struggling retail sector again saw price growth fall 1.8% year over year. Retail trailed the other sectors before the pandemic, posted less than 5% growth.

Overall, US commercial real estate transaction volume was down 58% in January, according to RCA. In December, transaction volumes increased 8% year-over-year. January experienced similar declines to the second and third quarters of 2020, which directly followed the onset of the pandemic.

Transaction volumes in January fell across property types at double-digit rates, except for senior housing. This was a pivot from December transactions when apartment and industrial sales took off, driving most activity. Even office properties had a good month with the highest transaction volumes since 2019. It should be noted that it is typical to see an end-of-year rush and RCA adds that the activity was likely compounded by investors closing delayed deals from earlier in the year.

 

Source:  GlobeSt.

No Comments

Downtown Miami Revitalization Takes Flight

The revitalization of Downtown Miami is continuing to evolve.

New York-based developer Time Century Holdings has entered the Miami market to transform the Metro Mall into a luxury jewelry center. The developer secured a $23.6 million construction loan for the $50 million project through City National Bank of Florida.

Time Century Holdings is working with architect Kobi Karp on the project to create a destination for “luxury jewelry retailers, wholesalers, consumers and watch enthusiasts.” Phase one includes a basement, ground, mezzanine and second floors, while the second phase—set to start later this year—will include the development of four stories of office space. The wholesale retail portion of the project is already 60% leased by jewelers from Europe, South America and Asia. The leasing helped to secure the loan, which Yair Levy of Time Century called a “true endorsement” of the project and of Downtown Miami.

The jewelry center itself will take up four floors with a three-story atrium. There are retail spaces ranging from 500 to 2,000 square feet with rental rates ranging from $65 to $150 per square foot.

The jewelry center is just one of several ongoing projects transforming Downtown Miami and big real estate players are getting involved.

 

Source:  GlobeSt.

No Comments

Miami Beach Adds 17th Street Garage To Class A Office Request For Proposal

Following a large response from developers interested in building Class A office space on three city-owned parking lots north of Lincoln Road, Miami Beach Commissioners this week decided to add one more option to a formal Request for Proposals (RFP) process – the 17th Street garage across from City Hall.

Eighteen developers including Design District developer Craig Robins’ Dacra, Michael Comras’ The Comras Company jointly with David Martin’s Terra, and Integra partnering with Barry Sternlicht’s Starwood Capital, responded to the City’s Request for Letters of Interest (RFLI) to build Class A office space on the three surface parking lots. It’s part of an effort to diversify a tourism-dependent economy hit hard in recent years by hurricanes, Zika, and, more recently, COVID.

Adding the aging garage structure to an RFP would allow the City to “have someone else pay for the rebuilding of that garage,” said Commissioner Ricky Arriola who raised the idea after Miami Beach Planning Director Tom Mooney suggested it. It also would open the door to a “more elegant” structure that could address concerns about a need for more height. “If we could smooth [the space] out over a greater area, we might avoid having the height issues that I think is going to be of concern to our residents,” he added.

Commissioner David Richardson said, “It’s an interesting idea and I suppose it wouldn’t hurt for us to hear solicitations, but I’m not of the belief at this point that we should surrender that piece of land right now.”

Calling it “a gateway property” leading from 17th Street to Lincoln Road, Richardson said, “There have been many discussions over the years about ways to open up the funnel” from the Miami Beach Convention Center to Lincoln Road. “I do agree the parking structure is coming to the end of its useful life” but he expressed concerns about the amount of parking that will be needed there in light of the request by the developers of the planned Convention Center Hotel to eliminate parking and reduce the hotel’s size as a way of increasing the likelihood of getting financing.

“Never hurts to listen but I would say it’s a pretty high bar for me to let that property leave government hands,” Richardson said.

Mayor Dan Gelber addressed “the funnel” to Lincoln Road. “It’s almost like people don’t walk that way sometimes because it feels like there’s a wall there,” he said. “We ought to be looking at ways to make that more of a gateway,” the opposite of what it is now, he said, which is “almost like a barrier.”

“Obviously, there’s an appetite for [Class A office space],” Gelber said, but added, “I’m not looking for Class A office buildings because I think it’s better to have… The goal is to diversify your economy so that you have more than just [tourism]” to rely on.

“We love our hospitality industry, but it’s not the most resilient industry,” he said. In addition to the potential to attract “knowledge-based industries, information-based industries,” Gelber said, “If we could have better office space here, you really do get people out of their cars and off the causeway… We have a huge number of residents who go back and forth” between Miami and Miami Beach.

“We don’t’ have to commit to it, let’s just see,” Gelber said.

Interim City Manager Raul Aguila told Commissioners, “This is really the time that this city has to consider some really bold planning ideas… This garage is a relic and we’ve been trying to reprogram Lincoln Lane for the longest time.” Developing the garage site would “activate that area,” he said.

Adding it to an RFP would not be binding, Aguila emphasized, but “since there’s been so much interest from high-profile developers, I think it’s just a terrific idea to authorize us to add the 17th Street garage as a developer’s option.”

He reminded them the RFP has to come back to the Commission for approval and any proposals would be further vetted by the Commission.

“I think it’s a cool idea,” Commissioner Michael Góngora said, while noting he wasn’t sure he could support it given the request for reduced parking for the Convention Center Hotel. He agreed the garage “is kind of a big block of cement.”

“From an aesthetic perspective,” he said, allowing a private developer to “make it more beautiful” is appealing.

Aguila noted the City could require as part of the RFP that a developer replace the parking. “This is to give you all an option to look at this as a holistic site.”

Both Arriola and Góngora expressed concerns about the potential of four active construction sites along Lincoln Road at one time. “Sometimes these progressive ideas are difficult to oversee and administer in real life,” Góngora said.

“If you don’t like it, you don’t have to approve it,” Aguila responded, “but I’d like to put something before you to consider.”

Commissioner Mark Samuelian who has made economic diversification one of his priorites said, “Possibilities and options are right up my alley so I will support this tonight.”

“Offices often can be a less intensive use, 9 to 5 office [hours] versus a hotel,” he said. “My gut says I’d probably lean toward the office being a little more community friendly.” Once again, he urged the City to “engage the community early and often” as long-term leases on the properties under consideration would require voter approval.

Richardson said, “What that particular area is begging for is a gateway to Lincoln Road” but, to do that, he said, “It seems clear to me you’ve got to chop off a northeast corner of the building [to] open it up.” He suggested asking developers to take into consideration the desire “to eliminate the funnel” when submitting proposals.

“This is just giving a bigger canvas for developers to come to us with a proposal,” Arriola said. “We would still own the land.”

Reiterating the Commission would have final say over the RFP that is developed and voters have the ultimate word on long-term leases, Arriola said adding the 17th Street garage is “giving ourselves a lot more flexibility [taking] an aging garage that some future Commission is going to have to deal with and get the private sector to pay for it.”

“It is a brutalist structure and it divides the Convention Center from Lincoln Road,” Arriola said. “Any design should make it a holistic integration, so I think it’s a smart move by us.”

 

Source:  RE Miami Beach

No Comments

City Gives Easy Online Access To Miami Comprehensive Neighborhood Plan

This week, the City of Miami added the Miami Comprehensive Neighborhood Plan (MCNP) onto the publicly-available Gridics Municipal Zoning Platform, CodeHUB. The MCNP is a key zoning document that creates the policy framework that guides all future public and private development decisions in the City of Miami to ensure the City meets the needs of existing and future residents, visitors and businesses, while preserving the character and quality of its communities.

The incorporation of the MCNP into CodeHUB will help to drive smarter regional planning decisions for the future by integrating future land use, environmental, and infrastructure requirements into an interactive, parcel level, 3D map. This is the first time that the MCNP has been made available to the public in such an interactive and accessible tool, allowing the public to be actively involved in understanding the direction of their community, including how the infrastructure will change to support future growth. The most updated version of the MCNP and Future Land Use Map (FLUM) will be made available 24/7 through this new platform.

This week’s online publication of the MCNP follows the successful 2018 launch of the Miami 21 Zoning Code on the Gridics platform, providing citizens an up-to-date and fully digitized version of Miami 21, plus parcel-specific lookup tools for citizens to get zoning property record data for their property or parcel.

 

Source:  MiamiGov.com

No Comments

Related Group, Block Capital Sell Wynwood Building For $77M

The Related Group and Block Capital Group sold the Bradley Wynwood mixed-use building in Miami for $77 million.

The five-story building, at 51 N.W. 26th St., was sold to ICONIQ Capital, a San Francisco-based investment fund with over $3 billion in real estate under management. It has 175 apartments, about 36,000 square feet of retail, and more than 300 parking spaces.

The sale was brokered by Jaret TurkellRoberto PesantScott Wadler and Omar Morales of Berkadia.

 

Click here to read more about this story.

No Comments

Miami Board Approves Design District Height Increase, Paving Way For Dacra’s Mixed-Use Tower

For the next phase of development in the Miami Design District, Craig Robins is aiming high.

The Miami Planning and Zoning Appeals Board voted 10-1 on Wednesday to approve zoning changes in the luxury retail and cultural district that will allow Robins’ Dacra to build a mixed-use project anchored by a 36-story tower.

The nearly 1.8-acre development site is on two vacant parcels at 3750 Biscayne Boulevard and 299 Northeast 39th Street, acting as a gateway into the Miami Design District. Most of the district is owned and developed by a partnership involving Dacra, luxury goods titan LVMH and private investment firm L Catterton. The proposed gateway site is also near the FEC train tracks and the proposed site of a commuter train station to be developed by Brightline.

The proposed zoning changes would grant Dacra a height increase from 20 stories to 36 stories and shift unused intensity and density from other commercial properties in the Design District to the proposed 36-story building, which would rise on the Biscayne Boulevard property.

The city commission still has to vote on the request for final approval.

At the planning board meeting, Robins and his attorney Neisen Kasdin said the entire project would not exceed 845,000 square feet, which is what is currently allowed for the Biscayne Boulevard property, according to the Design District Special Area Plan. The project could entail a mix of offices, residential and some retail, although Dacra has not provided detailed renderings. The planning board also added a car dealership as an allowed use to the SAP.

“We have the right to build every single square foot that we are asking you for today,” Robins told planning board members. “There is zero impact that our project causes from what we can do as a matter of right….We just want to be able to do something that is architecturally significant.”

Still, Paul Mann, the sole planning board member who voted against Dacra, and attorneys for Manhattan-based private investment firm MacArthur Capital Group, which owns a neighboring property, said the height increase and the transferring of unused intensity and density from other properties would set a bad precedent.

“Any special area plan — past, present and future — can take advantage of this new density and intensity transfer program,” Mann said. “It seems to me like it is dangerous. I don’t see anything beautiful about a 36-story building sticking up in the middle of nowhere.”

The nearest tall building to the proposed site is the 12-story Quadro condominium at 3900 Biscayne Boulevard.

Paul Savage, a lawyer for MacArthur, said Dacra’s proposed 36-story tower is unlike any other building in the Design District, which is largely made up of low-rise commercial retail buildings.

“It is certainly not appropriate or transitional to the area,” Savage said. “This has far-reaching implications, not to mention how the 36-story height will impact my client.”

Through an affiliate, MacArthur owns a one-story retail building with a surface parking lot at 3701 and 3737 Biscayne Boulevard, which is directly east of Dacra’s proposed project. According to city documents, MacArthur sought approvals in 2015 to change the zoning so the company could develop a four-story building consisting of two stories of parking and two stories of office space. At the time, Robins opposed MacArthur’s request which the company subsequently withdrew. He suggested that was the reason MacArthur wanted to object to Dacra’s plan.

“The MacArthur site is not developable because there is an alley that goes through it,” Robins said. “They have been pressuring me to support vacating the alley to build a massive high-rise….I will not be pressured or extorted into supporting something that will be bad for the community.”

 

Source:  The Real Deal

No Comments

Elon Musk Has A (Tunnel) Vision For Miami

When it opened in 1994, it was hailed as the greatest engineering feat of its time. The 31.5-mile Channel Tunnel, often called the ‘Chunnel’ for short, links southern England and northern France, carrying more than 10 million passengers and more than a million tons of freight each year. With 23.5 miles of the passageway running under the English Channel, the Chunnel is the world’s longest undersea tunnel.

While a tunnel underneath the Miami River being proposed by the world’s richest man, business magnate Elon Musk, wouldn’t be nearly as long or elaborate, the rewards for a city now infamous for having some of the worst traffic in the nation would be immense. And the technology to build a structure that would prevent water from leaking through Miami’s porous limestone and be strong enough to stand up to sea level rise already exists, according to two University of Miami College of Engineering professors.

“In a nutshell, yes, it’s a feasible project. This is not an idea that’s full of holes,” said Jean-Pierre Bardet, a professor of civil, architectural, and environmental engineering. “There are already tunnels in Florida that go beneath the seabed,” he said, noting the 4,200-foot Port of Miami Tunnel, which runs beneath Biscayne Bay, connecting the MacArthur Causeway on Watson Island with PortMiami on Dodge Island; and the New River Tunnel in downtown Fort Lauderdale. 

 

“The challenges are not too great, as limestone, such as that which underlies the City of Miami, is easily worked, as the PortMiami tunnel demonstrates,” said Sam Purkis, professor and chair of marine geosciences at the Rosenstiel School of Marine and Atmospheric Science. “The challenge is that the limestone is so permeable and porous, that any subsurface structure will be immersed in the water table. This is quite typical for tunnels that have to be sealed in such a way that the water does not flood them. A plus of Miami is that it’s an area which isn’t particularly seismically active, so no earthquakes to worry about.” 

To solve the problems posed by limestone, engineers employed innovative technology to build the Port of Miami tunnel, Bardet noted. Ground freezing, a construction technique used in circumstances where soil needs to be stabilized so that it will not collapse next to excavations, and rapid grout injection, which helped solidify the earth before the massive tunnel boring machines even started drilling, were used.

Such techniques, said Bardet, would conceivably be used to build the tunnel underneath the Miami River, an idea that Musk, founder of SpaceX and Tesla, has discussed with Miami Mayor Francis Suarez as a solution to the city’s traffic gridlock.

“Cars & trucks stuck in traffic generate megatons of toxic gases & particulate, but @boringcompany road tunnels under Miami would solve traffic & be an example to the world,” Musk tweeted recently. 

With tunneling projects underway in California and Las Vegas, the billionaire tech mogul’s Boring Company “constructs safe, fast-to-dig, and low-cost transportation, utility, and freight tunnels,” touts the firm’s website.

But tunnels are extremely expensive to dig, costing between $100 million and $1 billion per mile. “In order to make vast tunnel networks feasible, tunneling costs must be reduced by a factor of more than 10,” The Boring Company’s website states.

Musk said he could build a 2-mile tunnel under Miami for as little as $30 million.

“The fact that he [Musk] mentioned this and that the mayor of Miami picked up on it and that there has been discussion is extremely positive,” said Antonio Nanni, professor and chair of civil, architectural, and environmental engineering. “We need the public to think about what can be done to address the issue of transportation. And irrespective of the outcome, you need to have a dialogue.” 

The project would involve building a tunnel for electric vehicles that would connect Brickell Avenue and Biscayne Boulevard.

Such an endeavor would need to be broken into two parts, according to Nanni, an expert on concrete and advanced composite-based systems. “There are the technological issues: Can we do it in Florida? Do we have the technology? Can we address the issue of potential flooding? And the answer is, no doubt, we can,” he pointed out.

Approximately two years ago, Nanni served on a special committee that studied the feasibility of drilling a tunnel under the Miami River to alleviate traffic congestion, concluding with other members on the panel that such a project could be done.

“The tunneling itself, the technology of digging and making a structure safe, exists. It’s state-of-the-art,” Nanni said. “And the advantage of working underground is that you would not, apart from the entry and exit points, impact the communities above ground.” 

But the overarching planning for the project would need to be clearly spelled out, he said, noting that questions—such as whether the tunnel would be a passenger-only passageway or include a dedicated rail line for freight and cargo companies—need to be answered. “These are the big questions policymakers need to address,” he explained.

Still, as intriguing as a tunnel under the Miami River sounds, viable, well-deigned transit alternatives such as extensions to the Metrorail, the reintroduction of light rail, safer bike lanes, and strategically placed water taxi networks shouldn’t be abandoned, said Sonia Chao, a research associate professor in the School of Architecture, who teaches in the area of sustainable architecture and urbanism, resilient design, and historic preservation.

“Creating more road lanes, above or below ground, shouldn’t be the end game,” she stated. “But, if a tunnel were to be introduced, one would hope it could be strategically placed so as to potentially mitigate storm surge wave action, as these destructive forces of nature may accompany an increasing number of stronger hurricanes.”

Joanna Lombard, a professor of architecture who is a founding member of the Built-Environment Behavior and Health Research Group at the University of Miami, said that while tunnels typically work best when they have a clear, utilitarian purpose, other initiatives such as creating safe and diverse neighborhoods, reliable infrastructure, and walkable access to parks, schools, businesses, and health care should continue to be addressed.

“A city needs life. Tunnels are basically connecting two points, and they don’t necessarily enhance the urban fabric,” Lombard said. “We know that what makes great cities are great places. The character and dynamism of a great place has typically depended on the density of activity and the multiple layers of choice embedded in the urban grid. What that looks like in a post-pandemic world is still to be determined,” he added. “For many people, commuting in person is less necessary than was once assumed. Having destinations within walking distance in one’s own neighborhood has always been a new urbanist standard. And now that just about everyone understands that indoor air ventilation systems can be sources for viral transmission, open spaces, landscape, and parks are more important than ever.”

 

Source:  UM News

No Comments

Largest Development Site In Wynwood Hits Market

2000 N. Miami Avenue became available for sale, presenting a rare opportunity for investors and developers to own a parcel of land in Miami’s Wynwood neighborhood, which has skyrocketed into a thriving arts center, nightlife hub, and tourist magnet over the past decade.

Currently, the 1.38-acre lot located on the corner of North Miami Avenue and NW 20th Street is currently the largest undeveloped property by square feet available for sale inside Wynwood, as well as one of the largest development sites over 1 acre that hasn’t been scooped up yet by a major developer. Tony Cho, chairman and chief vision officer of Metro 1, is the broker on the listing, with Andres Nava taking lead as the primary listing agent.

The property comprises four conjoined lots being sold together, which are all zoned T6-8-O NRD-1, allowing up to 8 stories by right and 12 stories with bonuses of mixed-use infill development. Under this zoning, the property can be developed into up to 207 units (310 with bonuses) or licensed for up to 414 hotel keys. The proposed development by Metro 1 Commercial, the Miami-based brokerage representing the owner-seller on the listing, would include a mixed-use residential and retail development with 206 apartment or condo units, 21,000+ square feet of retail, outdoor living spaces, and 360 parking spaces.

“This site is something truly rare in the Miami market, where Wynwood has been the dominant ‘hot’ neighborhood now for more than six to seven years. We feel that coming off of COVID-19, with more optimism in the commercial real estate market and investors poised to compete for high-quality deals, now is the time to bring this opportunity to the table. We anticipate a competitive process as the winning bidder will benefit from the accelerated population growth that has defined Miami as the fourth most densely populated city in the nation,” said Nava, managing director of Metro 1 Commercial.

The property is surrounded by some of Miami’s most exciting restaurant and retail concepts, including rooftop dining destination Astra, local cult-favorite burger bar Kush, and Wynwood newcomer Momosan Ramen by Chef Morimoto. In addition, the site sits adjacent to the Wynwood offices of Uber and Spotify and is just a block away from the Arlo Hotel, Wynwood’s first, which broke ground earlier this month.

 

© 2024 FIP Commercial. All rights reserved. | Site Designed by CRE-sources, Inc.